On Wednesday, March 10, Bitcoin (BTC) showed strong northward momentum surging over 4% and moving past $57,000 levels. At present Bitcoin is strongly consolidating above $55,500, however, the reducing stablecoin inflows and dropping USDT supply at the exchanges can put downward pressure on Bitcoin (BTC).
As CoinGape reported yesterday, the short-term whale SOPR shows signs of further expansion. Yesterday, popular Bitcoin analyst whalemap mentioned that Bitcoin (BTC) can consolidate confidently in the range between $55K-$58K with a scope of further price discovery.
But the drop in stablecoin inflows at the exchanges can possibly hurt the prospects of the Bitcoin bulls. Analyst Joseph Young states that a strong breakout above $56K levels will see more capital entering into Bitcoin while accelerating the rally.
There's not a lot of sidelined capital entering into Bitcoin at the moment.
Below is stablecoin inflow into exchanges.
When $56k cleanly breaks, I imagine more capital would enter into $BTC, accelerating the rally.
Hence, I think consolidation, and then explosive move upwards. pic.twitter.com/ZwqzHgGfit
— Joseph Young (@iamjosephyoung) March 11, 2021
But in his follow up tweet, Young further adds:
“Market is pulling back, with $BTC and $ETH weakening. I think stablecoin inflows are important to sustain strong upwards momentum. Until this happens, I will expect consolidation after each minor move up.”
Another on-chain data provider Santiment notes that Bitcoin has relatively shown good stability in the first 10 days of March. However, it adds that the USDT supply at the exchanges has dropped to levels seen 40 days ago.
???? #Bitcoin's market value has hit a 17-day high, peaking at ~$57,350. Looking at supply on exchanges, we can see that $BTC has been fairly stable throughout these first 10 days of March. $USDT supply, however, has dropped to levels last seen 40 days ago. https://t.co/oL6BFeer8X pic.twitter.com/iUYnzBqcna
— Santiment (@santimentfeed) March 10, 2021
Some Positive for Bitcoin (BTC) That Can Trigger Northward Momentum
- On Wednesday, Goldman Sach COO John Waldron told Reuters that it is exploring ways to meet the rising customer demand to invest and own Bitcoins. “Client demand is rising,” Waldron said. “We are regulated on what we can do. We continue to evaluate it … and engage on it.” Goldman has recently started its crypto trading desk and even started dealing in Bitcoin futures.
- As per reports from the local publication, Israel-based pension giant Altshuler Shaham disclosed that it invested $100 million in the Grayscale Bitcoin Trust (GBTC) during the second half of the last year. “Altushler has an alternative assets department that has ETH and BTC wallets. They were active in the past at some degree, and are looking into space again,” the source said.
- London-based crypto fund Nickel Digital Asset Management conducted a recent survey that shows that 85% of them plan to increase their investments in the crypto space over the next two years.